In the "SNC Webisode 1: Inking the Deal" (http://youtu.be/vOwqN2PJST8), both Itkoff and Morgan sign the deal and the date is 03/29/2008. Holiday Spirits was released 12/2008 and they are both on the cover photography.
But they were gone by the time the first Six Pack EP came out and replaced by Seggie and Tyler.
What happened? I love Steve Morgan's voice and on stage personality.


Here's the sncmusic.com blog announcing the change: http://www.sncmusic.com/blog/pbs-taping-new-snc-members/
A couple other relevant spots here on the site:
http://www.sncmusic.com/photo/special-visit-from-steve-morgan-in-the-stu...
http://www.sncmusic.com/forums/d34b5a-dms-love-thread/
SNC FanChat interview with Steve: http://www.sncmusic.com/blog/fa11f6-new-snc-fanchat-is-up-ep-17/
IanF, Steve Morgan and Mike Itkoff both made the very difficult decision to take a step back from the group due to the group's strenuous touring schedule. They were away from home a lot and both of them have young children. I hope this helps!
They left the group to spend more time with their families. =]